Section 1 Flashcards
Reporting to the legal system or courts as means of settling a dispute.
Litigation
Settlement of a potential claim by an impartial panel of knowledgeable experts.
Arbitration
When a design professional acts in good faith on behalf of a client, such professional would establish a reasonable assumption of liability in proportion to their fee. In order to use this concept, it should appear in the design contract.
Limitation of lability
A meeting between parties in a disputes which is facilitated by an impartial third party. The mediator attempts to get the parties to a mutual resolution, but has no power to make an enforceable decision.
Mediation
The most basic type of commercial insurance and is limited to liability claims of bodily injury or property damage. Coverage is provided for accidents at your place of. Uisnrss or at your customers location.
General liability
Protects against loss from a claim of alleged negligent acts, errors or omissions in the performance of professional services. This might include loss of client data, claims of non-performance, or negligence.
Professional liability insurance (errors and omissions insurance)
Required by regulation in most states when a business has w2 employees. It provides medical and disability coverage for on-the-job injuries or work related illness.
Workers compensation insurance
Provides coverage when an employee steals money, equipment or other assets from a firm or its clients.
Fidelity or commercial dishonesty bond
Covers allegations of discrimination, wrongful termination and sexual harassment of employees.
Employment practices liability insurance
Circumstance that is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to exicute the contract. Act of God
Force majeure
Assures that the contractor will agree to the contract if his proposal is accepted. If he does not, the bond is forfeited to the owner. The form states the amount of the bond and is signed and sealed by both a responsible officer of the contracting firm and a responsible officer of the security firm. 5-10%
Bid bond
The contract for the work. This document usually is a reference which points to various sections of the general conditions and contract documents which control different aspects of the work.
Agreement
Assures that the contractor will complete the work in conformance with the contract requirements. As for the bid bond.
Performance bond
Assures that the contractor(or the insurer) will pay their subcontractors and materials suppliers and that the owner will not be heard responsible for contractor default. As for the bid bond.
Payment bond
Certified that the contractor has adequate workers compensation, general liability, owners protective liability and auto insurance.
Certificate of insurance
A brief description of the project and timetable for the bid period. Usually describes:
Where to obtain the contract documents.
Fees and documents to be submitted with the bid including fees for document sets, bid security, bonding requirements, wage rate information, and eeo ( equal employment opportunity) requirements.
Invitation to bid
Detailed requirements for the bidders.
Instructions to bidders
Forms to be filled out and submitted by the contractor which lists the base bid price, any alternatives(additive or deductive) and the price for each, provisions for additional work (usually unit price for over excavation of unuseable material and replacement with compacted fill), signatures and certifications by the officers of the contractor.
Bid form
Where union labor requirements are in effect. These comprise an extensive list of trades and the prevailing union wage for each trade in the area where the project is located.
Prevailing wage rates
Changes in the contract documents that are issued during the bid period. These are issued by the owner in writing, usually up to 5 days prior to the bid opening. Often they occur due to questions that arise during bidding due to contractor inquiries.
Addenda
Adjustment in the contract price by agreement of the contractor and owner. Agreed prices do not apply to items where stipulated or contract unit prices have already been set.
Agreed price
Set out in detail the requirements for execution of the work. Sets out in detail the legal requirements of all parties to the contract(the owner, contractor, and designer)
Standard general conditions
This is a section which includes changes or amendments to the language of certain parts of the standard general conditions which are specific to a particular unit of government such as the state department of transportation or a county government. The section simply outlines the words to be removed from the standard conditions and gives the words to be inserted in their place.
Supplemental general conditions
An estimated cash amount allocated to items that have not yet been designed, detailed or selected(example:lighting fixtures) prior to bidding.
Allowance
Optional adjustments in the scope of work which are issued with the bid documents. These adjustments either increase the scope and the contract price (additive alternatives), reduce the scope and the contract price(deductive alternatives), or provide for substitutes for some item in the base bid which may increase or decrease the contract price.
Alternatives
The price proposed to complete the basic work of the project, exclusive of alternates and extra work.
Base bid
Collectively the construction drawings , technical specifications, general specifications and bidding forms and instructions.
Contract documents
A unit price stated on the bid form by the contractor that is the amount he will charge for that item.
Contract unit price
A document issued by the owner to the contractor giving him notice that the bid has been awarded to him.
Notice of award
A meeting held, usually at the project site, generally a week after the beginning of the bid period. This is an opportunity for the contractors to walk the site and ask questions of the designer.
Pre-bid conference
A unit price stated in the contract documents (usually on the bid form) by the owner that is the amount that will be paid for that item.
Stipulated unit price